INTERM.ACCT.:REPORTING...-CENGAGENOWV2
3rd Edition
ISBN: 9781337909358
Author: WAHLEN
Publisher: CENGAGE L
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Chapter 6, Problem 11MC
To determine
Identify the balance of
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Bank Reconciliation and Adjusting Entries (Appendix 6.1) Odum Corporation’s cash account showed a balance of $17,198 on March 31, 2019. The bank statement balance for the same date indicated a balance of $17,924.55. The following additional information is available concerning Odum’s cash balance on March 31:
• Undeposited cash on hand on March 31 amounted to $724.50.
• A customer’s NSF check for $173.80 was returned with the bank statement.
• A note for $2,000 plus interest of $25 was collected for Odum by the bank during March. The bank notified Odum of this collection on the bank statement.
• The bank service charge for March was $15.
• A deposit of $951.75 mailed to the bank on March 31 did not appear on the bank statement.
The following checks mailed to creditors had not been processed by the bank on March 31:
#429 $57.40
#432 $147.50
#433 $214.80
#434 $191.90
A customer check for $149.50 in payment of his account and listed correctly for that amount on the bank state-ment had…
Determine the adjusted balance of thr cash in bank. Asap please? i really need this
The following information pertains to Cuay Corporation, whose deposits in transit totaled P49,000
at December 31, 2020:
Based on the above, answer the following questions:
Cuay Corporation
BANK RECONCILIATION
13. What is the total book receipts for December?
14. What is the cash balance per books on December 31, 2020?
15. What is the total outstanding checks on December 31, 2020?
16. What is the adjusted cash balance on November 30, 2020?
17. What is the adjusted cash balance on December 31, 2020?
November 30, 2020
Balance per bank statement
Less: Outstanding checks
Check No. 4321
Check No. 4329
P 435,000
P 6,000
15,000
Check No. 4340
1,700
Check No. 4341
The cash receipts and cash payments of Detuya Company for April 2020 follow:
4,675
27,375
P 407,625
16,200
P 423,825
Total
Add: Deposits in transit
Balance per books
CASH RECEIPTS
CASH PAYMENTS
Date
Cash Debit
Check No.
Cash Credit
P 208,700
20,350
27,950
109,350
92,700
53,000
16,850
P 44,550
7,350
96,500
33,200
73,600
50,000
31,600…
Chapter 6 Solutions
INTERM.ACCT.:REPORTING...-CENGAGENOWV2
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- The bank reconciliation shows the following adjustments. Deposits in transit: $1,698 Notes receivable collected by bank: $2,500; interest: $145 Outstanding checks: $987 Error by bank: $436 Bank charges: $70 Prepare the correcting journal entry.arrow_forwardComplex Balance Sheet Presented below is the unaudited balance sheet as of December 31, 2019, prepared by Zeus Manufacturing Corporations bookkeeper. Your company has been engaged to perform an audit, during which you discover the following information: 1. Checks totaling 14,000 in payment of accounts payable were mailed on December 31, 2019, but were not recorded until 2020. Late in December 2019, the bank returned a customers 2,000 check marked NSF, but no entry was made. Cash includes 100,000 restricted for building purposes. 2. Included in accounts receivable is a 30,000 note due on December 31, 2022, from Zeuss president. 3. During 2019, Zeus purchased 500 shares of common stock of a major corporation that supplies Zeus with raw materials. Total cost of this stock was 51,300, and fair value on December 31, 2019, was 51,300. Zeus plans to hold these shares indefinitely. 4. Treasury stock was recorded at cost when Zeus purchased 200 of its own shares for 32 per share in May 2019. This amount is included in investments. 5. On December 31, 2019, Zeus borrowed 500,000 from a bank in exchange for a 10% note payable, manning December 31, 2024. Equal principal payments are due December 31 of each year beginning in 2020. This note is collateralized by a 250,000 tract of land acquired as a potential future building site, which is included in land. 6. The mortgage payable requires 50,000 principal payments, plus interest, at the end of each month. Payments were made on January 31 and February 28, 2020. The balance of this mortgage was due June 30, 2020. On March 1, 2020, prior to issuance of the audited financial statements, Zeus consummated a non-cancelable agreement with the lender to refinance this mortgage. The new terms require 100,000 annual principal payments, plus interest, on February 28 of each year, beginning in 2021. The final payment is due February 28, 2028. 7. The lawsuit liability will be paid in 2020. 8. Of the total deferred tax liability; 5,000 is considered a current liability. 9. The current income tax expense reported in Zeuss 2019 income statement was 61,200. 10. The company was authorized to issue 100,000 shares of 50 par value common stock.arrow_forwardThe bank reconciliation shows the following adjustments. Deposits in transit: $526 Outstanding checks: $328 Bank charges: $55 NSF checks: $69 Prepare the correcting journal entry.arrow_forward
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